Contrasting SoFi Technologies (NASDAQ:SOFI) and BTC Digital (NASDAQ:BTCT)

SoFi Technologies (NASDAQ:SOFI) and BTC Digital (NASDAQ:BTCT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SoFi Technologies and BTC Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	4	6	5	1	2.19
BTC Digital	0	0	0	0	0.00

SoFi Technologies presently has a consensus price target of $12.50, suggesting a potential downside of 1.11%. Given SoFi Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe SoFi Technologies is more favorable than BTC Digital.

Profitability

This table compares SoFi Technologies and BTC Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	18.64%	3.82%	0.69%
BTC Digital	N/A	N/A	N/A

Insider and Institutional Ownership

38.4% of SoFi Technologies shares are owned by institutional investors. Comparatively, 7.3% of BTC Digital shares are owned by institutional investors. 2.6% of SoFi Technologies shares are owned by insiders. Comparatively, 0.6% of BTC Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SoFi Technologies and BTC Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$2.61 billion	5.31	$498.67 million	$0.37	34.16
BTC Digital	$8.48 million	1.79	-$2.82 million	N/A	N/A

SoFi Technologies has higher revenue and earnings than BTC Digital.

Risk and Volatility

SoFi Technologies has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, BTC Digital has a beta of 2.73, indicating that its share price is 173% more volatile than the S&P 500.

Summary

SoFi Technologies beats BTC Digital on 12 of the 13 factors compared between the two stocks.

About SoFi Technologies

SoFi Technologies, Inc. provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it provides SoFi Money offers checking and savings accounts, debit cards, and cash management products; and SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory. Further, the company offers SoFi Credit Card that provides cash backs on every purchase; Sofi Relay, a personal finance management product that allows to track all of their financial accounts comprising credit score and spending behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an application that manages travel search and booking experience; SoFi At Work provides financial benefits to employees, including student loan payments made on their employees' behalf; Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons; and other lending as a service that offers pre-qualified borrower referrals and sells loans to third-party partner. The company was founded in 2011 and is based in San Francisco, California.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.